Question 34
Not-for-Profit OrganisationsUse the information below to answer questions 34 and 35.
Gbagada Social Club. Receipt and Payments Account for the year 1993
Receipts (₦): Balance b/d 720; Subscriptions 14 300; Proceed from raffle draws 2 000; Total 17 020
Payments (₦): Rent 180; Furniture 3 500; Rate 580; Stationery 120; Welfare expenses 1 000; Raffle prize 950; Balance c/d 10 690; Total 17 020
Additional information: (₦ at 1:1:93; ₦ at 31:12:93)
Subscription in arrears 300; 450
Furniture 7 000; —
Subscription received in advance 500; 400
Rate owing 50; 60
Subscription relating to the accounting year 1993 in the income and expenditure account is
- A.₦15 050
- B.₦14 550
- C.₦14 300
- D.₦13 400
Show the answer and explanation
Answer: B (₦14 550)
Explanation
14 300 − 300 (for 1992) + 450 (owing for 1993) + 500 (paid in 1992 for 1993) − 400 (paid for 1994) = ₦14 550.